{"id":10114,"date":"2025-05-18T10:26:35","date_gmt":"2025-05-18T08:26:35","guid":{"rendered":"https:\/\/oxfordwisefinance.com\/blog\/?p=10114"},"modified":"2025-05-18T10:26:42","modified_gmt":"2025-05-18T08:26:42","slug":"top-tech-stock-winners-from-trumps-600-billion-deal","status":"publish","type":"post","link":"https:\/\/oxfordwisefinance.com\/blog\/top-tech-stock-winners-from-trumps-600-billion-deal\/","title":{"rendered":"Top Tech Stock Winners from Trump&#8217;s $600 Billion Deal"},"content":{"rendered":"<\/p>\n<div>\n<p>After President Donald Trump&#8217;s recent diplomatic engagement in <b>Saudi Arabia<\/b>, it was announced that the kingdom has committed to investing a substantial <b>$600 billion<\/b> in various initiatives with <b>U.S. companies<\/b>. This comprehensive agreement encompasses <b>$142 billion<\/b> earmarked for <b>defense sales<\/b>, aimed at equipping the nation with cutting-edge <b>warfighting technology<\/b> and <b>equipment<\/b> that enhances its military capabilities.<\/p>\n<p>Among the primary beneficiaries of this significant investment are American semiconductor giants <b>Nvidia<\/b> <span class=\"font-bold whitespace-nowrap\" data-id=\"204770\">(NVDA<span class=\"text-green-900 ticker-change\"> 0.28%<\/span>)<\/span> and <b><a href=\"https:\/\/oxfordwisefinance.com\/blog\/2-ai-stocks-that-could-create-lasting-generational-wealth\/\">Advanced Micro Devices<\/a><\/b> <span class=\"font-bold whitespace-nowrap\" data-id=\"202799\">(AMD<span class=\"text-green-900 ticker-change\"> 1.91%<\/span>)<\/span>. Following the announcement from Trump, both companies disclosed lucrative contracts to supply <b>semiconductors<\/b> to Humain, a burgeoning <b>artificial intelligence (AI)<\/b> startup financed by the public investment fund of Saudi Arabia.<\/p>\n<div class=\"image\"><img decoding=\"async\" alt=\"Artist rendering of AI chip.\" loading=\"lazy\" src=\"https:\/\/g.foolcdn.com\/image\/?url=https%3A%2F%2Fg.foolcdn.com%2Feditorial%2Fimages%2F818436%2Fgettyimages-1364859722.jpg&amp;op=resize&amp;w=700\" \/><\/p>\n<p class=\"caption\">Image source: Getty Images.<\/p>\n<\/div>\n<h2>Strategically Replacing Revenue Lost from China with AI Investments<\/h2>\n<p><b>Nvidia<\/b> has announced its plan to provide Humain with several hundred thousand of its most advanced <b><a href=\"https:\/\/oxfordwisefinance.com\/blog\/supercharged-tech-stocks-with-attractive-valuations\/\">graphics processing units (GPUs)<\/a><\/b> over the next five years, which will be instrumental in powering the AI <b>data centers<\/b> that the company intends to establish in Saudi Arabia. The initial phase of this collaboration will see the shipment of <b>18,000<\/b> of its <b>GB300 Grace Blackwell AI supercomputer chips<\/b>, alongside the provision of <b>InfiniBand networking equipment<\/b> to ensure high-speed data transfers.<\/p>\n<p>In parallel, the <b>Saudi Data &amp; AI Authority (SDAIA)<\/b> is set to deploy up to <b>5,000 Blackwell GPUs<\/b> to facilitate the development of intelligent <b>smart city solutions<\/b>. <b>Nvidia<\/b> is also committed to enhancing local expertise by training thousands of developers in Saudi Arabia and will introduce the nation\u2019s first <b>Omniverse Cloud<\/b>, a platform designed to simulate and test various physical AI solutions effectively.<\/p>\n<p>Analysts from <b>Bank of America<\/b> estimate that the potential value of this deal could range between <b>$15 billion<\/b> and <b>$20 billion<\/b> throughout the agreement&#8217;s duration, translating to annual sales between <b>$3 billion<\/b> and <b>$5 billion<\/b>. This financial influx could significantly bolster Nvidia&#8217;s market position as it navigates new opportunities.<\/p>\n<p>Additionally, reports indicate that the U.S. government may be on the verge of easing <b>chip export restrictions<\/b> for the <b>United Arab Emirates<\/b>. This prospective deal would allow the UAE to import up to <b>500,000 advanced AI chips<\/b> annually through at least 2027. Of this total, approximately <b>20%<\/b> of the chips would be allocated to Abu Dhabi&#8217;s AI firm <b>G42<\/b>, while the remainder would support various U.S. companies developing <b>data centers<\/b> in the region.<\/p>\n<p>These strategic agreements are anticipated to help Nvidia compensate for some of the revenue it has lost to <b><a href=\"https:\/\/oxfordwisefinance.com\/blog\/reciprocal-tariff-hits-china-3-key-insights-for-pinduoduo-investors\/\">China<\/a><\/b>, particularly after the U.S. tightened its <b>export controls<\/b> on technology to the nation. Previously, China accounted for roughly <b>$17 billion<\/b> of Nvidia&#8217;s revenue in the last fiscal year; however, this figure has reportedly diminished to low single digits for its data center revenue in Q4. Based on the current Q4 run rate, Nvidia&#8217;s projected annual revenue could be around <b>$7 billion<\/b>.<\/p>\n<p>On the other hand, <b>AMD<\/b> has announced a significant deal valued at <b>$10 billion<\/b> with Humain to supply the company with chips over the next five years. AMD has indicated that it will provide a comprehensive range of its <b>AI computing<\/b> portfolio, which encompasses both <b>GPUs<\/b> and <b>central processing units (CPUs)<\/b>. Furthermore, AMD has signed a memorandum of understanding with SDAIA to explore the implementation of AMD chips in future AI-focused <b>data centers<\/b>.<\/p>\n<p>During its Q1 earnings announcement, AMD disclosed that it anticipates a <b>$700 million<\/b> revenue decrease in Q2 as a result of new <b>Chinese export restrictions<\/b>, with an overall expected reduction of <b>$1.5 billion<\/b> for the year. The Humain deal, valued at <b>$2 billion<\/b> annually, is poised to offset a significant portion of this lost revenue.<\/p>\n<h2>Identifying the Next Major Trend in AI Growth<\/h2>\n<p>Beyond merely replacing lost revenue from China, these agreements signify a potential new trend that could serve as a significant growth catalyst for the semiconductor industry: sovereign investments in <b>artificial intelligence<\/b>.<\/p>\n<p>Saudi Arabia and the United Arab Emirates are evidently investing heavily in <b>AI<\/b> and <b>data centers<\/b>, but they are not alone in this endeavor. Within the Middle East, for instance, <b>Kuwait<\/b> has aligned with <b>Microsoft<\/b> in a partnership aimed at positioning Microsoft as a regional leader in AI technology. Moreover, <b>Bahrain<\/b> and <b>Qatar<\/b> are also investing significantly to enhance their national AI infrastructures.<\/p>\n<p>Globally, countries like <b>India<\/b> have formed partnerships with the leading three cloud computing giants to scale their AI infrastructures effectively. Even smaller nations such as <b>Singapore<\/b> are allocating resources toward developing their AI capabilities.<\/p>\n<p>Simultaneously, it appears that President Trump is prepared to leverage the U.S.&#8217;s supremacy in <b>AI semiconductors<\/b> as a negotiating tool in international trade discussions. As the U.S. seeks to craft a new trade agreement with China, there\u2019s a possibility that the current chip restrictions could be reconsidered, potentially opening up further opportunities for companies like Nvidia and AMD.<\/p>\n<h2>Evaluating the Investment Potential of Nvidia and AMD Stocks<\/h2>\n<p>Both <b>Nvidia<\/b> and <b>AMD<\/b> are strategically positioned to capitalize on the growing spending in AI infrastructure. Nvidia stands out as the dominant player in the <b>GPU market<\/b>, holding over <b>80%<\/b> market share, and is expected to maintain robust growth as investments in <b>data centers<\/b> continue to increase.<\/p>\n<p>Meanwhile, <b>AMD<\/b> has established itself as a prominent supplier of <b>CPUs<\/b> for data centers and has carved out a significant niche in the <b>GPU market<\/b> for AI inference. With the inference market projected to expand rapidly, AMD&#8217;s positioning is favorable for future growth.<\/p>\n<p>Additionally, both companies&#8217; stocks are currently attractively priced, trading at around a <b>30 times forward price-to-earnings ratio (P\/E)<\/b>, with substantial growth potential still on the horizon.<\/p>\n<p><img data-recalc-dims=\"1\" decoding=\"async\" alt=\"NVDA PE Ratio (Forward) Chart\" src=\"https:\/\/i0.wp.com\/media.ycharts.com\/charts\/32f69d5fcc4310cf0b308bb378c1794c.png?w=1140&#038;ssl=1\" \/><\/p>\n<p class=\"caption\">Data by YCharts.<\/p>\n<p>Consequently, both Nvidia and AMD stocks appear to be compelling investment opportunities at this moment, especially given the numerous growth prospects that lie ahead.<\/p>\n<\/p>\n<\/div>\n<div>\n            <span class=\"article-disclosure\"><\/p>\n<p><em>Bank of America is an advertising partner of Motley Fool Money. Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Bank of America, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.<\/em><\/p>\n<p><\/span>\n          <\/div>\n<p><a href=\"https:\/\/www.fool.com\/investing\/2025\/05\/18\/tech-stock-winners-trump-600-billion-saudi-deal\/\" rel=\"nofollow\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>After President Donald Trump&#8217;s recent diplomatic engagement in Saudi Arabia, it was [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10115,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","pagelayer_contact_templates":[],"_pagelayer_content":"","iawp_total_views":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[142,240],"tags":[],"class_list":["post-10114","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance-business","category-stock-market","col-md-12"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Top Tech Stock Winners from Trump&#039;s $600 Billion Deal - 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